Stable but uninspired, a sort of backhanded compliment summarises the German component distribution market during the second quarter 2018. Sales by companies registered with the Fachverband Bauelemente Distribution (FBDi e.V.) grew in the months April, May and June by 5% (compared with Q2/2017) to 949m Euros.

The order situation performed better, and with 1.04bn Euros exceeded the billion Euro mark once again. With 1.09 the book-to-bill rate (order intake to revenue) remained on a high level.

Broken down by technology the passive components grew strongest with 14.4% taking sales to 137m Euros). Electromechanicals rose 7.7% to 100m Euros) while semiconductors were more sluggish posting 2.8% growth to 654m Euros).

Power supplies surged 13.7% to 27m Euros, and displays slipped back 4.3% ending at 21m Euros. Regarding the breakdown of sales there are slight changes: semiconductors 68.9%, passive components 14.4%, electromechanics 10.6%, power supplies 2.8% and others (sensors, displays, assemblies) 3.3%.

Georg Steinberger, FBDi Chairman of the board commented: “The effect of postponed orders due to the poor supply situation continues during the second quarter. Since mid of 2016 the orders have grown substantially stronger than the revenue, but do not have a recognizably adverse effect on the revenue growth. All this indicates that either the backlog is growing or the cancellations have increased. This will be reflected in the overall year 2018, we expect a moderate growth in the one single-digit range at the best.”

He added, “The trade dispute does not seem to have a significant impact on the overall German economic growth so far. Somehow the high technology market, by and large, seems to be uninfluenced of the political situation. Endogenous factors such as missing production capacities and shortage play a more important role.”


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